The exchange, promoted by Financial Technologies India Ltd (FTIL), said Sebi has nominated former LIC chief Thomas Mathew T as its public interest director. “As an interim arrangement, U Venkataraman, whole-time director, will assist a special committee of public interest directors in carrying out the functions of the exchange,” it said.

The five-member board of MCX-SX now consists of four public interest directors with only one nominee of shareholders — Venkataraman.

Sources said that questions were raised by the board/ shareholders of MCX-SX on the continuance of Shah and Massey after the Forward Market Commission (FMC) issued a show-cause notice last Friday. The FMC had blamed not just on the exchange management but also a group defined as “key management personnel”, which included Shah and Massey. The changes effectively means FTIL and Shah have virtually lost control of the MCX-SX board, said a source.

The notice, which questions the “fit and proper” status of FTIL, Shah, Massey and MCX MD & CEO Shreekant Javalgekar comes in the wake of Rs 5,600-crore crisis at National Spot Exchange Limited. Since the FMC found nearly 2,000 instances of default at the exchange spread over the past two years, it was of the view that Shah could not be absolved of responsibility for the settlement crisis.